Veolia: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Veolia shares, with a target price raised from E43.
4 to E45.3, to reflect the company's growth strategy through to 2027.

Our estimates are consistent with the group's strategic trajectory to 2027, i.e. an EBITDA CAGR of between 5% and 6%, higher than the 2013/H1 24 organic CAGR of 4.1%, the broker says.

The GreenUp strategic plan is based on three Boosters businesses, which are expected to accelerate gradually and involve asset rotation.

Oddo BHF reports that a reprofiling that is accretive in terms of EPS, and has no impact on the leverage limit, could also take place through minority buyouts of the Chilean and US regulated water businesses, as well as water technologies.

We favor the latter option, in symbiosis with the strategy, the broker says.


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